Professional Documents
Culture Documents
Chapter 8
Chapter 8
Chapter 8
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2 Learning objectives
1. List some of the main reasons organisations need to make location decisions
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3 The Nature of Location Decisions
3. Location option
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4 1. Strategic Importance of Location Decisions
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5 2. Objectives of Location Decisions
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6 Location options
1. Expand existing facility
4. Doing nothing
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7 Factors that affect location decisions
1. Regional Factors
2. Community consideration
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8 1. Regional Factors
2. Location of Markets
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9 2. Community Consideration
1. Quality of life
a. Schools, churches, shopping, housing, transportation,
2. Services
3. Attitudes
4. Taxes
5. Environmental regulation
6. Utilities
7. Development support
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10 3. Site Related Factors
1. Land
2. Transportation
3. Zoning
4. Other restrictions
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11 Multiple Plant Manufacturing Strategies
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12 Service and Retail Locations
Revenue focus
3. Competition
4. Traffic volume/pattern
5. Customer access/parking
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13 Global Locations
1. Facilitating factors
2. Benefits
3. Disadvantages
4. Risks
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14 1. Facilitating Factors
1. Trade agreements
2. Technological advances
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15 2. Benefits
1. Markets
2. Cost savings
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16 3. Disadvantages
1. Transportation costs
2. Security costs
3. Unskilled labour
4. Import restrictions
5. Criticisms
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17 4. Risks
1. Political
2. Terrorism
3. Economic
4. Legal
5. Cultural
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18 5. Issues related to Managing Global Operations
1. Language and cultural differences
2. Management styles
7. Level of technology
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19 Evaluating Location Alternatives
3. Factor Rating
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